Summary of Provisions That Would Change the Social Security Program

Estimates based on the intermediate assumptions of
the 2010 Trustees Report

Change from present law

Results with this provision

Long-rangeactuarialbalance

Annualbalance in75th year

Long-rangeactuarialbalance

Annualbalance in75th year

Present Law, Alternative II.

-1.92

-4.12

C1.1

Shorten the hiatus in the normal retirement age (start increasing to age
67 for those age 62 in 2011, rather than those age 62 in 2017).
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0.08

0.00

-1.84

-4.12

C1.2

Shorten the hiatus in the normal retirement age (start increasing to age
67 for those age 62 in 2011, rather than those age 62 in 2017) and then
index the normal retirement age (by 1 month every 2 years) until the NRA
reaches age 68.
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0.44

0.74

-1.48

-3.38

C1.3

Shorten the hiatus in the normal retirement age (start increasing to
age 67 for those age 62 in 2011, rather than those age 62 in 2017)
and then index the normal retirement age (by 1 month every 2 years)
until the NRA reaches age 70.
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0.62

1.72

-1.30

-2.40

C1.4

Shorten the hiatus in the normal retirement age (start increasing to
age 67 for those age 62 in 2011, rather than those age 62 in 2017)
and then increase the NRA 2 months per year until the NRA reaches age 68.
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0.55

0.74

-1.37

-3.38

C1.5

Shorten the hiatus in the normal retirement age (speed up the increase to
age 67). That is, increase the NRA by 2 months per year for those attaining
age 62 in 2012 through 2017, five years earlier than in current law, which
would increase the NRA 2 months per year for those reaching age 62 in 2017
through 2022.
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0.06

0.00

-1.86

-4.12

C1.6

Increase the normal retirement age (NRA) from 66 to 67 one year earlier
than current law, starting for those reaching age 62 in 2016 and ending
for those reaching age 62 in 2021. Then, after 2021, index the NRA to
maintain a constant ratio of expected retirement years (life expectancy
at NRA) to potential work years (NRA minus 20).
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0.44

1.54

-1.48

-2.58

C1.7

Index benefits to longevity after the normal retirement age (NRA) reaches
age 67 under current law. Under current law, the NRA reaches 67 for
individuals who attain age 62 in 2022 and later. Under this provision, the
NRA would be further increased by one month for those attaining age 62 in
every other year after 2022.
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0.41

1.52

-1.51

-2.60

C1.8

Increase the normal retirement age (NRA) for those reaching age 62 in
2018 and later. For those reaching age 62 in 2018, the NRA would be 66
years, 6 months. The NRA would increase 2 months per year for those
reaching age 62 in 2019, 2020, and 2021, reaching an NRA of 67 for those
turning 62 in 2021.Then, after 2021, index the NRA to maintain a constant
ratio of expected retirement years (life expectancy at NRA) to potential
work years (NRA minus 20).
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0.44

1.54

-1.48

-2.58

C2.1

Gradually raise the earliest eligibility age (EEA) for Social Security
retirement benefits from 62 to 65. The EEA would be increased by 2
months for individuals reaching age 62 in every year, starting in 2012.
The EEA of 65 would apply for those reaching age 62 in 2029 and later
(those reaching age 65 in 2032 and later). As under current law, the PIA
formula applicable for any individual would depend on the year in which
eligibility age is attained. It should be noted that the elimination of
retirement eligibility between ages 62 and 65 would increase the number
of individuals who would apply for disabled worker benefits at those ages.
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-0.07

-0.40

-1.99

-4.52

C2.2

Shorten the hiatus in the NRA by 5 years, that is, start increasing the
NRA from 66 to 67 for individuals age 62 in 2012, rather than in 2017.
Beginning for those age 62 in 2012, increase the EEA and NRA for retired
worker benefits by 2 months per year until the EEA reaches age 63 and the
NRA reaches age 67 for those attaining age 62 in 2017. Thereafter, increase
both EEA and NRA by 1 month every 2 years. Finally, increase the earliest
eligibility age for disabled widow(er)s and aged widow(er)s at the same rate
as the increase in the EEA for retired worker benefits.
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0.54

1.40

-1.38

-2.72

C2.3

Starting in 2013, convert all disabled worker beneficiaries to retired
worker status upon attainment of their EEA (rather than their NRA).
After conversion, apply the early retirement reduction for retirement
at EEA (currently 25%) times the ratio of years after 2012 (or years
after attaining age 21, if later) and before attaining age 62, to 40.
Medicare eligibility would be extended to age 65 on the basis of
disability. After 2012, disability applications would not be accepted
for benefit entitlement that would start at ages over EEA.
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0.38

0.75

-1.54

-3.37

C2.4

After the normal retirement age (NRA) reaches age 67, index NRA to
maintain a constant ratio of life expectancy at NRA to potential work
years (NRA-20) and maintain the earliest eligibility age (EEA) at 5
years less than the normal retirement age in the future. Also, include
a "hardship exemption" with no EEA/NRA change if a worker has 25 years
of earnings of at least the level needed for 4 quarters of coverage, and
average indexed monthly earnings (AIME) less than 250% of the individual
aged Federal poverty level (wage-indexed from 2009). The hardship exemption
is phased out for those with AIME above 400% of the poverty level.
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0.34

1.22

-1.58

-2.90

C2.5

Increase both the earliest eligibility age (EEA) and the normal retirement age (NRA) at
a rate of 36/47 of a month per year starting for those reaching age 62 in 2023, until
reaching an EEA of 65 and an NRA of 70 for those reaching age 62 in 2069. For each year,
the computed EEA and NRA would be rounded down to the next lower full month.
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0.62

1.99

-1.30

-2.13

C2.6

Increase the normal retirement age (NRA) 3 months per year starting in 2017 until
reaching 70 for those attaining age 62 in 2032. Then increase the NRA 1 month every
2 years thereafter. Note that the NRA would increase from 66 to 67 faster than under
current law. Increase the earliest eligibility age (EEA) from 62 to 64 at the same time
the NRA would increase from 67 to 69; that is, for those attaining age 62 in 2021 through
2028. Keep EEA at 64 thereafter. Keep years in which delayed retirement credits can be
earned at 4 years after attaining NRA.
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1.36

2.90

-0.56

-1.22

C2.7

For those attaining age 62 in 2020 and 2021, increase the earliest eligibility age (EEA)
to 63 and increase the normal retirement age (NRA) to 68. Then, increase the EEA and NRA
by 3 months per year starting with those reaching age 62 in 2022 and stopping with those
reaching age 62 in 2025. The EEA would then remain at 64 and the NRA at 69 for workers
and spouses attaining 62 in 2025 and later.
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